Here’s how JP Morgan activates Euro payment settlement with JPM Coin
JP Morgan has launched its first blockchain transaction in Europe using its own token, called the JPM Coin, which is only made available to its institutional clients and is used exclusively for payment settlement.
Highlights
- JP Morgan and other software-related companies utilising blockchain for speedy and secure transactions
- The American banking giant announced to have been processing $9.8 trillion transactions on a daily basis
For its corporate clients in Europe, JP Morgan, an American multinational financial services company, has launched its first blockchain transaction for its European clients with the help of its own token, called the JPM Coin transaction. On the JP Morgan permissioned blockchain, the large German-based conglomerate, Siemens AG, carried out the JPM Coin transaction with a payment in euros, confirmed the recent reports.
The Coin Services division of JP Morgan was initially introduced in 2019. The introduction of blockchain-based transfers between different client accounts occurred round-the-clock in comparison to conventional payment rails like wire transfers. Transactions on the ledger are not limited to business hours and can occur at any time.
JPM Coin is designed for settling payments
As mentioned above, a permissioned blockchain is a distributed ledger that is not publicly accessible. According to the information, JPM Coin is only made available to its institutional clients and is used exclusively for payment settlement.
Blockchain technology is being utilised by banks and other TradFi companies as a potential business tool. For them, using a blockchain for transactions could be a secure approach to upscale and speed up settlement.
Despite being four years old, the JPM Coin has been used in transactions worth around $300 billion. The banking company further claims that it processes daily payments of roughly $9.8 trillion.
Other software giants plunged into blockchain adoption
The German software giant, SAP, revealed on Thursday that it was testing international payments using Circle's US Dollar Coin (USDC). This will speed up the process for SMEs attempting to send money abroad, according to SAP.
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Banks that provided services to the sector as well as cryptocurrency companies have relied on the blockchain to make payments and move digital assets. Before it was shut down, New York-based Signature Bank ran Signet, which facilitated the exchange of digital currency for conventional fiat money.
